Life Settlement FAQ’s
LIFE SETTLEMENT FREQUENTLY ASKED QUESTIONS
Q. Why haven’t I heard about life settlements before?
A. With people living longer and wanting more in their retirement, life settlements have gained popularity in recent years. They have become a viable alternative to realize immediate cash assets.
Q. Is a life settlement a smart financial option for me?
A. Most life settlement candidates are people 65 years or older who have reevaluated their need for a life insurance policy. Rather than continue paying expensive premiums for an unneeded policy, they convert it to cash funds to enjoy while they are alive.
Q. What is my policy worth?
A. Policy amounts and investors differ, making it impossible to set a standard amount. However, you can generally expect to get a significant percentage of your policy’s value — well in excess of the surrender value.
Q. What are the fees for a life settlement transaction?
A. This is an important question because most life settlement brokers do not disclose what they charge. Hidden fees might mean you are paying more than you realize, or receiving less for your investment than you might elsewhere. Life Settlement Expert offers full disclosure and a low, standard fee.
Q. Will my privacy be protected?
A. Absolutely. Our privacy policy and advanced transaction procedures ensure that your identity is never revealed to anyone without your consent.
Q. How long does it take to get the funds from my policy?
A. Like any transaction, the time frame can vary. Once you qualify and we begin looking for an investor, it typically takes about four to eight weeks to receive your funds.
Q. Who is going to buy my policy?
A. Normally, life insurance policies are purchased by large banks and financial institutions who are interested in buying a variety of assets to balance their investment portfolios.
Q. Who should consider a life settlement?
A. In general, life settlements are a smart idea for people 65 and over, who no longer need a life insurance policy to protect their children or assets or can no longer afford to pay expensive premiums.
Q. What types of policies can be sold in a life settlement?
A. Universal Life, Whole Life, Variable Universal Life, Term and Convertible Term Life policies issued by U.S.-based insurance companies. Joint and second-to-die policies are eligible as well.
Q. How much should the policy’s face value be?
A. Generally, a policy with a face value of $50,000 or higher may be eligible to convert into a life settlement.
Q. Will I have to pay any premiums after my policy is sold?
A. No, once the policy is sold, you will have no future premium obligations whatsoever.
Q. What if I want a life settlement, but still need or want life insurance?
A. This is an individual decision. Some people like to have some coverage after selling their policy in a life settlement. This is absolutely possible. We are happy to discuss your options, or you can consult your agent or financial advisor.
Q. Can I sell my life insurance policy on my own?
A. Life settlements are complex legal and financial transactions. Compliance regulations continually change, further complicating matters. Professional assistance is necessary not only to navigate this world, but also to maximize the policy’s value in the marketplace and to locate an appropriate buyer quickly.
Q. Wouldn’t it be easier to return my policy for the surrender amount?
A. This can be a costly decision. Generally speaking, the surrender amount on your policy is a fraction of what we can sell it for in a life settlement. Why cheat yourself of money you deserve?
Q. Will I owe taxes on the money I receive?
A. Typically, the money you receive in a life settlement will be tax-free up to the original policy’s tax basis. This represents a powerful financial benefit!
